Johnson takes top job with Blockbuster

Published: Saturday, July 17, 1993 at 3:15 a.m.

Last Modified: Saturday, July 17, 1993 at 12:00 a.m.

Spartanburg entrepreneur George Dean Johnson Jr. will sell his 209-store video chain and take

Councilwoman

Susu Johnson

will resign, B1

a top job with Blockbuster Entertainment Corp. in Fort Lauderdale, Fla., the companies announced Friday. His 150-employee Spartanburg offices will become the Eastern regional offices of Blockbuster Entertainment. In a tax-free stock transaction valued at $155 million, Johnson signed a letter of intent Friday to sell his company, WJB Video, to Blockbuster. He will share that amount with two partners. "Not only do we get good, profitable stores, we get excellent people," Blockbuster President Steve Berrard said in a telephone interview Friday night. He said Blockbuster has signed an eight-year lease on Johnson's Spartanburg office building, and employees there are expected to keep their jobs. In addition, Spartanburg is expected to be the headquarters for his company's Discovery Zone indoor playground franchise, which will build 100 stores during the next three years, he said. The deal must clear an anti-trust review before it is finalized. Within a month, Johnson will move to Florida to become president of Blockbuster's consumer division, which includes about 2,100 video stores, 231 Sound Warehouse music stores and a small group of Discovery Zone indoor playgrounds. "It's a significant opportunity for me and my partners," said Johnson, 50, who established WJB Video - now Blockbuster's largest franchisee - six years ago. His equal partners in the video company are Craig Wall, owner of Canal Industries of Conway, a timber company; and Dean Buntrock, a top officer at Waste Management Corp. in Chicago. Johnson said the sale provides him substantial liquidity. He has had most of his net worth tied up in video stores, shopping centers and industrial buildings. But a Blockbuster statement noted that Johnson does not intend to immediately sell his shares. Johnson, who graduated from Wofford College and once chaired the Spartanburg County legislative delegation, said he expects to eventually move back to his hometown. "This is my home. I'm going to Fort Lauderdale as part of the transaction because of my friendship with the principals of Blockbuster. They provided me with a lot of opportunity." Johnson first met Blockbuster Chairman Wayne Huizenga in the mid-1970s, when he sold the Johnson family garbage company to Waste Management Corp. of Oak Brook, Ill. Some of the executives at Waste Management went on to found Blockbuster and its franchises. "George is one of the finest operators we know," said Berrard. "He's great with people and he takes good care of customers." Several of the companies Johnson owns or co-owns will be left intact in the Upstate, including America Storage, Ballenger Paving Co., Johnson Development, and WJB-TV, a wireless cable company with 8,000 Florida subscribers. Johnson's development business includes 16 Upstate shopping centers - which are 95 percent leased - and five industrial parks. Foster Chapman, president of Johnson Development, said the sale of the video store company will provide funds for more commercial development in the Upstate. "It gives us resources we never had before. We are very much enhanced by it," he said. In addition to the video stores, Johnson will sell his Discovery Zone indoor playground franchise to Blockbuster. He has opened six stores so far and is in the process of opening about 20 more. Johnson said he has great confidence in the future of Blockbuster Entertainment. While he is running the retail side, Blockbuster will be moving into other entertainment and information technologies. "Blockbuster is going to become a brand name like Disney or Coke," he said. As for his own video company, he has already built stores in all the markets in his franchise territory, he said. In addition, the company's value was at its peak because of changing technologies coming in the at-home movie business."This also allows me to test my skills in a bigger arena." Selling the company brings him investment funds to do other business deals, he said. His business partnership with Wall and Buntrock, who owns 21 American Storage mini-warehouse complexes, will look for acquisitions and other start-up business opportunities. Any of those companies would be based in Spartanburg. The sale also should provide opportunities for many of his 3,500 video employees, he said. "Our talented people can play on a bigger field. They can move higher up in the company." Also Friday, Blockbuster also announced that it is buying its second largest franchisee, United Artists Video, which has 115 stores. Its owners will get $92 million in cash. For Gloria: Johnson's partnership owns 209 Blockbuster Video stores, including this one on East Main Street. He also will sell this Discovery Zone franchise, which has opened six indoor playgrounds in the Southeast. Johnson has developed 16 shopping centers in the Upstate, including Converse Plaza on the east side of Spartanburg. They are not part of the transaction. Original Atex file name: BLOCK1

<p> Spartanburg entrepreneur George Dean Johnson Jr. will sell his 209-store video chain and take</p><p>Councilwoman</p><p>Susu Johnson</p><p>will resign, B1</p><p>a top job with Blockbuster Entertainment Corp. in Fort Lauderdale, Fla., the companies announced Friday. His 150-employee Spartanburg offices will become the Eastern regional offices of Blockbuster Entertainment. In a tax-free stock transaction valued at $155 million, Johnson signed a letter of intent Friday to sell his company, WJB Video, to Blockbuster. He will share that amount with two partners. "Not only do we get good, profitable stores, we get excellent people," Blockbuster President Steve Berrard said in a telephone interview Friday night. He said Blockbuster has signed an eight-year lease on Johnson's Spartanburg office building, and employees there are expected to keep their jobs. In addition, Spartanburg is expected to be the headquarters for his company's Discovery Zone indoor playground franchise, which will build 100 stores during the next three years, he said. The deal must clear an anti-trust review before it is finalized. Within a month, Johnson will move to Florida to become president of Blockbuster's consumer division, which includes about 2,100 video stores, 231 Sound Warehouse music stores and a small group of Discovery Zone indoor playgrounds. "It's a significant opportunity for me and my partners," said Johnson, 50, who established WJB Video - now Blockbuster's largest franchisee - six years ago. His equal partners in the video company are Craig Wall, owner of Canal Industries of Conway, a timber company; and Dean Buntrock, a top officer at Waste Management Corp. in Chicago. Johnson said the sale provides him substantial liquidity. He has had most of his net worth tied up in video stores, shopping centers and industrial buildings. But a Blockbuster statement noted that Johnson does not intend to immediately sell his shares. Johnson, who graduated from Wofford College and once chaired the Spartanburg County legislative delegation, said he expects to eventually move back to his hometown. "This is my home. I'm going to Fort Lauderdale as part of the transaction because of my friendship with the principals of Blockbuster. They provided me with a lot of opportunity." Johnson first met Blockbuster Chairman Wayne Huizenga in the mid-1970s, when he sold the Johnson family garbage company to Waste Management Corp. of Oak Brook, Ill. Some of the executives at Waste Management went on to found Blockbuster and its franchises. "George is one of the finest operators we know," said Berrard. "He's great with people and he takes good care of customers." Several of the companies Johnson owns or co-owns will be left intact in the Upstate, including America Storage, Ballenger Paving Co., Johnson Development, and WJB-TV, a wireless cable company with 8,000 Florida subscribers. Johnson's development business includes 16 Upstate shopping centers - which are 95 percent leased - and five industrial parks. Foster Chapman, president of Johnson Development, said the sale of the video store company will provide funds for more commercial development in the Upstate. "It gives us resources we never had before. We are very much enhanced by it," he said. In addition to the video stores, Johnson will sell his Discovery Zone indoor playground franchise to Blockbuster. He has opened six stores so far and is in the process of opening about 20 more. Johnson said he has great confidence in the future of Blockbuster Entertainment. While he is running the retail side, Blockbuster will be moving into other entertainment and information technologies. "Blockbuster is going to become a brand name like Disney or Coke," he said. As for his own video company, he has already built stores in all the markets in his franchise territory, he said. In addition, the company's value was at its peak because of changing technologies coming in the at-home movie business."This also allows me to test my skills in a bigger arena." Selling the company brings him investment funds to do other business deals, he said. His business partnership with Wall and Buntrock, who owns 21 American Storage mini-warehouse complexes, will look for acquisitions and other start-up business opportunities. Any of those companies would be based in Spartanburg. The sale also should provide opportunities for many of his 3,500 video employees, he said. "Our talented people can play on a bigger field. They can move higher up in the company." Also Friday, Blockbuster also announced that it is buying its second largest franchisee, United Artists Video, which has 115 stores. Its owners will get $92 million in cash. For Gloria: Johnson's partnership owns 209 Blockbuster Video stores, including this one on East Main Street. He also will sell this Discovery Zone franchise, which has opened six indoor playgrounds in the Southeast. Johnson has developed 16 shopping centers in the Upstate, including Converse Plaza on the east side of Spartanburg. They are not part of the transaction. Original Atex file name: BLOCK1</p>